PRIVATE LIMITED COMPANY
Private Limited Company, the most preferred business type in our country is a powerful business vehicle for entrepreneurs. A Private Limited company levies limited liability over its shareholder. This form of business can be started with just two members and is scalable to any extent. It is the best form of business when the management is trying to obtain capital from a wide range of sources because it has high credibility and investors feel safe in investing in a private limited company. It is also considered as the most transparent form of business, as it complies with all statuary legislations. It has been refined over years to offer the best of practices and policies needed for businesses to help them grow and scale smoothly. Numbro has the expertise to help you with private limited company registration in Hyderabad and all around the country.
Why choose Private Limited Company
There are different forms of legal entities that can be used to conduct business in India. Private Limited Company is the most chosen form of legal entity as it has some benefits stated below.
Limited Liability – Unlike partnership firm and sole proprietorship, Private Limited Company work with a limited liability concept, which restricts the liability of the shareholders only to the extent of the capital, invested.
Perpetual succession– Once the entity comes into force with the incorporation, there is no event that can stop the succession of a Private Limited Company, death of a shareholder or any such reason is not a hindrance for its succession.
Scope of raising more capital– Yearly audits, reporting to the Ministry of corporate affairs keeps this a Private Limited Company very transparent for the investors to understand the business and is a good form for the investment.
Scope of business expansion– Expansion of any business is dependent on the resource pool used and the availability of finances. Private Limited company allows to bring in more capital from large pool of shareholders and also helps a good number of directors to be on it’s board who can be from various domains to bring their expertise.
Enhanced Corporate Image & Brand Value – Uniqueness of identity is very important when the business expand and working globally, Private Limited Company registration in India comes with a concept of uniqueness in the name which helps to build a brand image for it.
Best form of entity for Foreign Direct Investments & External Commercial Borrowings (ECB’s)- When investment is raised from other countries or loan is availed from foreign banks Private Limited Company registration in India acts as a good form of legal entity for share allotments and compliances with ECB guidelines and the investors can also feel safe due to it’s transparency.
Minimum requirements for a Private Limited Company
- 2 Directors
- 2 Shareholder
- At-least 1 Indian director
- Director’s Identification Number (DIN) of directors
- Digital Signature Certificate (DSC) of directors
- Minimum Authorized Capital of Rs 1,00,000
Our deliverables for a Private Limited Company registration
- 2 Digital Signatures
- 2 Director’s Identification Numbers
- Application of company name 2 times
- Preparation of Memorandum of Association
- Preparation of Articles of Association
- Application for Company PAN Card
- Application for Company TAN
- Authorized Share capital of Rs 10 Lakhs
Documents required for Online Private Limited Company registration
- PAN card of Directors and Shareholders
- ID Proof of Directors and Shareholders
- Address Proof of Directors and Shareholders
- Passport Size photograph of Directors & Shareholders
- Address proof of place of business to be registered
- NOC for business place and Rent Agreement, if any
- Duly filled in Digital Signature certificate application
- Duly filled in checklist with other details
Steps for Private limited Company registration
- Step-1 Provide the basic documents along with duly filled in checklist
- Step-2 We will apply for Digital Signature certificate on behalf of you
- Step-3 We will apply name and share the legal documents for your approval
- Step-4 Approved documents would be filed to ROC
- Step-5 Deliverables will be delivered to your place
ADVANTAGES OF HAVING A PRIVATE LIMITED COMPANY REGISTERED
Limited Liability as the personal assets of shareholders are being protected from outside liabilities.
More scope of raising capital.
Enhanced Corporate Image & Brand Value
Continuity of business not affected by the status of the owner.
Higher scope of expansion.
Best form of entity for Foreign Direct Investments & External Commercial Borrowings (ECB’s).
A legal form of business that offers limited liability, or legal protection for its shareholders but it also places certain restrictions on its ownership. These restrictions are defined in the company’s bylaws or regulations.
Director is an appointed or elected member of the board of directors of a company, who, with other directors, has the responsibility for determining and implementing company’s policies. Directors act on the basis of resolutions made in directors’ meetings. Directors derive their powers from the corporate legislations and the company’s articles of association. The Duties and responsibilities for directors are prescribed under the Companies Act 2013.
Digital Signature Certificate (DSC) is a secured electronic format of signature which is used for signing electronic & online documents, forms for e-tenders, ROC requirements, IT & PF returns, etc.
DIN stands for Director Identification Number which is unique and is issued on request of the ROC to every person who intends to become a director. DIN is mandatory for a person to be appointed as Director.
A Charter document that regulates a company’s external activities. The memorandum of association is drafted with the information relating to the company’s name, names of all members (shareholders) and number of shares held by them, and location of its registered office. It also states the company’s
(2) Amount of authorized share capital
(3) Whether liability of its members is limited by shares or by guaranty, and
(4) What type of contracts the company is allowed to enter into.
A Company cannot do any act which is beyond the Memorandum of Association.
The Articles of Association is a well-defined and clearly recorded document that defines duties and responsibilities of its Directors. The Directors shall function according to the Rights entrusted with them as per the AOA, and cannot carry out any activity beyond the AOA.
There must be a minimum of two Directors and a maximum of fifteen Directors in private Limited Company. However, one can expand beyond fifteen directors by following certain procedures prescribed under the act.
A signed statement by the Registrar of Companies declaring that a company is duly incorporated under the respective statutes. It is an exclusive evidence that the company has been formally incorporated and complying with all the procedures prescribed under the act.
The minimum paid-up share capital requirement was INR 100,000 in case of a private company and INR 500,000 in case of a public company as per CA 2013. However, no minimum paid-up capital requirements will now apply for incorporating private as well as public companies in India.
Any form of Business such as sole proprietorship, partnership, Public Limited, OPC and except LLP can be converted into a Private Limited company.
Individuals/corporate bodies /partnership firms who have an innovative idea, who look for a unique name, who look for raising funds from investors and who want to be transparent in doing the business can opt for a Private Limited Company. There must be at least two directors who are individuals and not corporate bodies or partnership firms.
A Company cannot be formed with all Non-resident directors. Hence, at least one director should be an Indian national.
The procedural Aspects Varies according to the size and volume of the business. The following are the basic documentation needed to be arranged and filed annually.
-Conducting Board & Annual General Meetings
-Preparation of Minutes of the Meetings
-Filing of Returns with ROC.
Absolutely you can avail our services from anywhere within/outside India. As most of the procedural aspects are Online, the experienced team at Numbro will guide in all the procedural aspects of getting the company Registered.
Income Tax: A Private Limited Company has to pay an advance tax on quarterly basis if the tax liability payable during the year is more than INR 10,000 and has to file income tax return on a yearly basis.
Goods & Services Tax (G.S.T): If the Private Limited Company taxable turnover exceeds
Rs.20, 00,000 it is liable to be registered under G.S.T and compliances applicable to GST Act have to be complied with.